Saturday, November 12, 2011

LR's CEO Richard Sadler said during a meeting to celebrate its 50th anniversary of entering Korean market, "South Korea is now leading global shipbuilding, shipping markets, etc.

Added, "Korea is also outstanding in shipbuilding technology, supply chain, etc. It is recognized on its technical skills by contracting Shell's FLNG project, etc., and Korean market gives much support and profit to LR,

And emphasized, "To follow and satisfy our clients in Korea, who secure high-end technology and make improvements by R&D, LR operates technical development division in Busan, Korea."

Meanwhile, LR classed 104 of Korean vessels in 2010 and to class 128 ships this year. Also, it serves in energy, rail & metro, etc. as well as marine classification in Korea.

Global newbuilding market is over-supplied, as Chinese government's support for domestic shipbuilders continues.

Mitsui Sumitomo Banking of Japan explained that China's financial institutions and government exert a massive influence on supply and demand of ships, by aiding selectively on its state-owned shipbuilders.

Large private-owned yards are likely to get over recent hardship, by help of local governments' investments on them, as well.

Overall, small-and-medium yards would go through a hard time as they get only limited support from financial institutions and local governments, which also suffer from economic troubles, while large private- and state-owned shipbuilders would maintain operations by 2014.

Supply and demand in shipbuilding industry is hard to measure, due to "China Factor," which does not follow economic cause and effect.

Chinese yards made only 60% of delivery in 2010 but is expected to deliver handymax bulker of 13m-14m dwt this year, increased from previous estimation of 6m dwt.

Kawasaki Heavy Industries of Japan inked orders for controllable pitch propeller, to be equipped in a total of seven vessels, five from Samsung Heavy Industries of South Korea and two for STX Offshore & Shipbuilding.

These shuttle tankers, with delivery in 2012-2013, are to be operated in Brazilian offshore project, delivering petroleum from off-shore FPSO to on-lang petroleum refinery.

Kawasaki's propeller is able to control pitch according to specific load and marine conditions, maximizing engine performance.

Two sets of one controllable pitch propeller, two azimuth thrusters and three side thrusters are ordered to be applied in two shuttle tankers built from STX.

The Samsung-built tankers are to equip one controllable pitch propeller and azimuth thruster, respectively.

Thursday, November 10, 2011

South Korea's shipbuilders put spurs to research and development in a bid to reduce building cost.

Technology development and patent application are frequent in offshore plant and special ship sectors, which mostly import equipment from overseas manufacturers.

Recently, R&D on cargo tank for LNG carrier is actively performed, with intent to reduce $9-10bn of royalty and in consideration of promising future demand for LNG carrier.

STX Offshore & Shipbuilding successfully developed independent-type LNG cargo tank and won an approval in principle (AIP) from DNV.

Samsung Heavy Industries self-developed membrane LNG cargo tank and completed mock-up test from LR and ABS, as well. Also, it plans a development for a new aluminium to replace polystyrene, used in a heat insulator for LNG carrier, with Korean steel-maker, Dongyang Gangchul by 2013.

In case of Hyundai Heavy Industries, it currently succeeded in creating 'Optimized designing system for LPG cargo tank,' which reduces about 200-tonne steel in building 82,000-cbm LPG carrier.

Daewoo Shipbuilding & Marine Equipment developed an Arctic drillship that stands 40 below-zero temperature for the first time in the world.

South Korea's Big3 expand application of IT in ship building for high-value ships, such as FPSO, drillship, etc.

Samsung Heavy Industries has applied its 'Smart Marine (SM) 3D' program to design high-value ship as of this year. It used to make use of SM 3D on commercial ships, however, about 70s of high-value ships were applied as well.

Samsung explained that high-value ship takes tripled workloads and time for design and two-and-a-half times bigger database than commercial ship. So, improved IT strategy would also be needed in designing high-value ship.

Daewoo Shipbuilding & Marine Engineering sets off to develop an integrated CAD program which enables to design high-value ships, warship and offshore facility with one standard program.

Hyundai Heavy Industries completed development of product lifecycle management (PLM) system for shipbuilding in July. Also, it improved designing capacity by connecting CAD drawings with bill of material and production/purchase system, etc.

MAN Diesel & Turbo has announced the first order for its second-generation Exhaust Gas Recirculation (EGR) system, to be applied aboard a Maersk Line container vessel - the 4,500-teu newbuilding #2358.

The system will be fully integrated with the vessel's main engine, a two-stroke MAN B&W 6S80ME-C9 type to be built by Hyundai Heavy Industries' engine & machinery division.

The EGR system enables the meeting of the imminent IMO NOx Tier-III emission levels due to come into force by 1 January 2016.

Søren H. Jensen, Vice President and Head of Research & Development at MAN Diesel & Turbo said: "We have taken an important step forward in the development of exhaust gas recirculation with the release of this second-generation system. This configuration will mirror the final design for our Tier-III NOx EGR engine programme. The main focus has been on integration of the entire EGR system into one unit which is a part of the engine as a charge-air cooler.

The EGR unit comprises a cooler, a scrubber, a water mist catcher and a blower unit, and is designed to be fitted on the engine in the same way as a charge-air cooler. Since the first-generation EGR was tested in service, we have achieved significant technical advances as well as improvement in performance. We have optimised the performance of the EGR so that the system recirculates 40% of the exhaust gas so as to meet the Tier-III reduction criterion."

The new EGR generation comprises a compact design that entails only minor changes to the engine outline, to the extent that the new engine type does not require any major design changes by shipyards.

The newbuilding #2358 from Hyundai's shipbuilding division is in the C-class series of 22 container vessels ordered by the Maersk Line and will be delivered in early 2013. Upon delivery, the vessel will serve the trade route between East Africa and the Far East. For a test period of three years, the engine will be operated partly with IMO Tier III NOx emission levels.

Shipping is the most effective transport means of moving goods and accounts for over 70% of global tonnage. Generally, ships use HFO as fuel, which contains sulphur and which during combustion, forms NOx and SOx. However, the environmental effects of ship emissions are under increased focus and the UN is currently introducing regulation aiming at drastically reducing NOx and SOx emission levels over the next decade.

MAN Diesel & Turbo's EGR system ensures full fuel flexibility, ranging from HFO to distillates and natural gas, and reduces NOx by directing part of the exhaust gas back into the engine's scavenge air. This reduces the oxygen content of the air in the combustion chamber, thereby reducing the combustion temperature and, as a result, reduces the NOx formation. Tests at MAN Diesel & Turbo's Diesel Research Centre, Copenhagen have shown that reaching the IMO's forthcoming Tier III NOx emission requirements is possible with EGR in its own right.

Wednesday, November 9, 2011

South Korea's major shipbuilders win steady new order for LNG carriers while global new ship orders rapidly decrease during the second half.

Daewoo Shipbuilding & Marine Engineering inked two 170,000-cbm LNG carriers, valued at over $400m, from Stena Bulk of Sweden and expecting additional new order for optional LNG carriers before this year is out.

Samsung Heavy Industries is also looking forward to contract two newbuilding LNG carriers from Stena Bulk in November.

South Korean yards dominate global newbuilding LNG-carrier market in 2011. According to Clarksons, overall new order for LNG carrier recorded the largest in recent six years after 2005 with 44 vessels year to date.

On the basis of LNG-carrier orderbook, Korea secures a total of 56 vessels, 90% of overall backlog of 62 ships.

Also, Korea is actively participating in research and development of LNG-carrier cargo hold and new-type high value ships, such as LNG-FPSO, LNG-FSRU, etc.

Market expects new order for LNG carrier would continue into next several years. NH Investment & Securities prospected about 29 newbuilding LNG carriers would be contracted in a year up to 2017, considering at least 200 of newbuilding LNG carriers are to be needed during 2014-2020.

Tuesday, November 8, 2011

As shipbuilding market is expected to face more difficulties next year, yards are targeting new order for next year similar to that of this year or less.

Hyundai Heavy Industries of South Korea has set target for Shipbuilding/Offshore & Engineering divisions in 2012 of $19.8bn, the same as this year. It has made a flexible adjustment of annual new order targets in accordance with global economic circumstances, for instance, $16.7bn in 2009, $12bn in 2010 and $19.8bn this year.

Daewoo Shipbuilding & Marine Engineering aimed $10bn each for 2009 and 2010 and set 10% higher target of $11bn this year. Although Geojae-based yard exceeds 2011 target with $12bn as of the end of October, new order target next year would be alike or less than this year.

In case of Samsung Heavy Industries, it targeted $10bn in 2009, then lowered to $8bn the next year and raised it again to $11.5bn this year. As of the end of October, it already met the annual target with $14.8bn and is known to in review of fixing new order target for next year.

Setting rather a stable target is mainly due to global economic uncertainty. Hyundai Research Institute expected '0%' growth rate in new order for next year, in particular, tanker, bulker as well as drillship and FPSO would have a weak demand.

Also, Samsung Economic Research Institute forecast that average dubai oil price is to decline from $105 in 2011 to $90 next year, which would cause decrease in new order for drillship, FPSO, etc.

And market competition seems to be fiercer, since China is likely to enter offshore plant market as well with low price.

ABS has released a new Guide for Ballast Water Treatment to help vessel owners and operators prepare for compliance with the IMO's International Convention for the Control and Management of Ships' Ballast Water and Sediments, 2004.

The convention is designed to provide a unified instrument to prevent, minimize and ultimately eliminate the transfer of harmful aquatic organisms via ships' ballast water and sediments. As of November 1, 2011, 30 member States representing 26.44 percent of world merchant shipping tonnage had ratified the convention against a required 30 States representing 35 percent of the world gross tonnage.

With the possibility that the convention may enter into force during the first half of 2013, owners are examining options for newbuilds and retrofits that will give them flexibility in terms of costs and operation, says Kirsi Tikka, ABS Chief Engineer and head of the society's environmental solutions efforts.

"The ballast water management regulations can be confusing for shipowners because they contain many unresolved and complex issues," Dr. Tikka adds. "As a result, some owners with newbuilds have elected to incorporate the installation of a ballast water treatment system, while others have chosen to have their vessel outfitted with the piping, electrical arrangements and space necessary to accommodate a ballast water treatment system in the future."

The newly released ABS guide has been developed to assist owners in understanding the classification requirements relating to the convention. In addition to the installation parameters required for any ABS-classed vessel utilizing an IMO member State type approved ballast water treatment system, the Guide offers owners two optional notations to demonstrate further due diligence in their ballast water management practices.

The tiered notations BWT and BWT+ will bring the ballast water treatment system under survey and the class society will review the system for compliance with the guide, confirm the installation design, conduct a survey during installation, periodically evaluate the onboard ballast water management system and perform shipboard function tests. The BWT+ notation signifies that the installed treatment system has been surveyed by an ABS surveyor at the manufacturing facility.

China has made a stable growth in marine-equipment export up to the third quarter this year.

According to China Customs, import and export of marine equipment in the first nine months this year totals $5.79bn, up by 10.68% on the same period last year.

Export grows by 20.89% to $1.89bn and import increases by 6.33% to $3.9bn.

In September, export takes monthly highest in 2011 with $235m, up by 29.18% on the same period last year, while import declines by 8.5% to $467m.

China has exported marine equipment to 193 of overseas countries from January to September, Asia taking 55.2% of overall export with $1.042bn and 21.53% in Europe with $406m.

In terms of countries, Chinese marine equipment manufacturers has exported over $100m to the US, Japan, Hong Kong, South Korea, Singapore and the Netherlands each.

Meanwhile, China has imported marine equipment from 62 countries, mainly from Asia and Europe. Asia holds 60.43% of overall import with $2.33bn and about $1.317bn of marine equipment, 34.15% was imported from Europe.

China imported over $100m of equipment from seven countries, the most from Korea, followed by Japan, Russia, the US, Begium, Norway and Finland.

Monday, November 7, 2011

Monthly new order remained at 1m-cgt level for four months in a row last month, went up by 8.8% to 1.38m cgt on September. Monthly average of over 3m cgt during the first half has plummeted getting into the second half, 1.82m-cgt newbuilding in July, 1.83m-cgt in August, 1.27m-cgt in September. South Korea's new order in October, in particular, recorded the monthly-lowest, with 6 ships of 260,000, totalling $1.1bn. This is one tenth of 2.22m-cgt in June.

It is obvious that new order is in depression by entering H2.

China, on the other hand, had two-consecutive increase in new order, booking 30 newbuildings of 670,000 cgt, $1.135bn.

Owing to low-price contracts, China succeeded in increasing new orders in October as well, following 17 ships of 400,000 cgt in August and 22 vessels of 410,000 cgt in September.

However, in terms of accumulated new order in the first ten months, Korea exceeds China with 304 vessels of 12.28m cgt, totalling $43.6bn, while China contracted 410 ships of 8.09m cgt, $14.8bn.

Meanwhile, global new order in the end of last month decreased by 13.9% to 125.9m cgt, on early 2011.